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England and Wales High Court (Queen's Bench Division) Decisions |
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You are here: BAILII >> Databases >> England and Wales High Court (Queen's Bench Division) Decisions >> Smith v Bailey [2014] EWHC 2569 (QB) (28 July 2014) URL: http://www.bailii.org/ew/cases/EWHC/QB/2014/2569.html Cite as: [2014] EWHC 2569 (QB) |
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QUEEN'S BENCH DIVISION
7 Rolls Building, Fetter Lane London, EC4A 1NL |
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B e f o r e :
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Melvyn Smith |
Claimant Respondent |
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- and – |
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Richard Bailey |
Defendant Appellant |
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William Latimer-Sayer (instructed by NewLaw Solicitors) for the Respondent
Hearing dates: 22nd July 2014
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Crown Copyright ©
The Hon. Mr Justice Popplewell :
Contributory Negligence
Accommodation
(1) 81 Upper Gungate is not a suitable property because:
(a) wheelchair access is not available to the front of the property; and
(b) wheelchair access is not available to the first floor; and
(c) covered access from the vehicle to the property is not available;
(2) It has a larger living space than required. His understanding is of a required living space totalling 112 sq m compared with 163 sq m at the new property and 149 sq m at the rented accommodation.
(3) There is no need to extend the building as proposed.
(4) He had undertaken a preliminary search and identified cheaper properties and properties of a similar price in the surrounding area which appear suitable although he had not yet had a chance to fully report on the properties. He did not identify the location, nature or price of such properties.
(1) A figure of almost £60,000 calculated in accordance with Roberts v Johnstone [1989] 1 QB 878, based on the purchase of 81 Upper Gungate for £360,000, credit for the value of his currently owned property of £131,000 (which has in fact now been sold for £125,000) and a multiplier of 10.39 years;
(2) Alteration costs of some £230,000, which would result in betterment of £20,000;
(3) Relocation costs of about £25,000;
(4) Future running and maintenance costs.
(1) CPR r. 25.7(4) places a cap on the maximum amount which it is open to the Court to order by way of interim payment, being no more than a reasonable proportion of the likely amount of the final judgment (para 30).
(2) In determining the likely amount of the final judgment, the Court should make its assessment on a conservative basis; having done so, the reasonable proportion awarded may be a high proportion of that figure (paras 37, 43).
(3) This reflects the objective of an award of an interim payment, which is to ensure that the claimant is not kept out of money to which he is entitled, whilst avoiding any risk of an overpayment (para 43).
(4) The likely amount of a final judgment is that which will be awarded as a capital sum, not the capitalised value of a periodical payment order ("PPO") (para 31).
(5) The Court must be careful not to fetter the discretion of the trial judge to deal with future losses by way of periodical payments rather than a capital award (para 32).
(6) The Court must also be careful not to establish a status quo in the claimant's way of life which might have the effect of inhibiting the trial judge's freedom of decision, a danger described in Campbell v Mylchreest as creating "an unlevel playing field" (paras 4, 39).
(7) Accordingly the first stage is to make the assessment in relation to heads of loss which the trial judge is bound to award as a capital sum (para 36, 43), leaving out of account heads of future loss which the trial judge might wish to deal with by a PPO. These are, strictly speaking (para 43):
(a) general damages for pain, suffering and loss of amenity;
(b) past losses (taken at the predicted date of the trial rather than the interim payment hearing);
(c) interest on these sums.
(8) For this part of the process the Court need not normally have regard to what the claimant intends to do with the money. If he is of full age and capacity, he may spend it as he will; if not, expenditure will be controlled by the Court of Protection (para 44). Nevertheless if the use to which the interim payment is to be put would or might have the effect of inhibiting the trial judge's freedom of decision by creating an unlevel playing field, that remains a relevant consideration (para 4). It is not, however, a conclusive consideration: it is a factor in the discretion, and may be outweighed by the consideration that the Claimant is free to spend his damages awarded at trial as he wishes, and the amount here being considered is simply payment at the earliest reasonable opportunity of damages to which the Claimant is entitled: Campbell v Mylchreest [1999] PIQR Q17.
(9) The Court may in addition include elements of future loss in its assessment of the likely amount of the final judgment if but only if (a) it has a high degree of confidence that the trial judge will award them by way of a capital sum, and (b) there is a real need for the interim payment requested in advance of trial (para 38, 45).
(10) Accommodation costs are "usually" to be included within the assessment at stage one because it is "very common indeed" for accommodation costs to be awarded as a lump sum, even including those elements which relate to future running costs (paras 36, 43).
"There is of course no reason in principle why the future accommodation needs of a claimant should not be met by renting a property. But in practice there are obvious difficulties. It is unlikely that adaptations would be modest, and if they were to cost a significant sum, there would be no assurance that a claimant would only have to pay them once. A claimant would not have security of tenure for the full expectation of his life and thus may have to move from one rented property to another, paying for the adaptations in each case. Indeed the situation may be worse, because as Mr Hopkins reminded the court, in such a situation the claimant may even have to pay for the reinstatement of the property which he is leaving to put it back into the condition in which it had been before the adaptations had been made."
"Renting as an alternative to purchasing property
In practice, almost all claimants will wish to purchase their own property. There can be several reasons for this.
First, many claimants will have been living in a property they owned prior to the accident. They wish to carry on, as near as they are able, as before and that will mean purchasing another property, suitable for their disability-related needs.
Secondly, there is a long-standing culture of owning property in this country. That may be changing as more and more people struggle to enter the housing market. But traditionally it is considered a safe and sensible decision to pay a mortgage rather than rent. It can be cheaper and it means that the claimant has a stake in the property market and the opportunity to make money if the property increases in value, something denied to the claimant who rents.
Thirdly, it can be very hard to find a long-term rental property which either is suitable or can be made suitable for the claimant's needs. Landlords can be fickle and may not welcome wholesale changes being made to their properties, even if the claimant agrees to reinstate the property at the end of the tenancy.
Fourthly, claimants will very often seek the security that comes with knowing they own their property, can do to it what they will and do not face the ongoing risk of eviction."
(1) Prior to the accident he was the owner of his own property for 33 years.
(2) He is married and his wife is 6 years younger than he. He naturally wishes to provide security for her for the significant period for which she might be expected to outlive him.
(3) I was told on instructions by Mr Latimer-Sayer, without objection from Mr Davis, that the rented accommodation he currently occupies is on an 18 month tenancy which was due to expire this summer but which has been extended until December 2014; he has no security of tenure thereafter; and that it was not easy finding such suitable rented accommodation in the first place. Accordingly, if a property is not purchased, the Claimant will be subjected to the uncertainties and insecurity referred to in Oxborrow and Kemp & Kemp above.
"For this part of the process [stage one], the judge need have no regard as to what the claimant intends to do with the money. If he is of full age and capacity, he may spend it as he will; if not, expenditure will be controlled by the Court of Protection."
Conclusion